Apparel maker Cygne Designs Inc has managed to narrow its full year net loss, despite costs associated with its purchase of Innovo Group's private label division and customers switching their sourcing to the Far East.

For the year ended 31 January the company recorded a net loss of $158,000, compared to a net loss of $6.2m in the prior year.

Net sales increased by 103% to $118.8m, up from $58.4m last year. Of this increase in sales, $73.2m came from Cygne's acquisition of the branded and private label denim business of Diversified Apparel Resources LLC on 31 July 2005 and its acquisition of the private label division of Innovo Group Inc on 12 May 2006.

However, non-denim sales fell by $12.8m as the customer for these products moved most of its sourcing to the Far East.

Gross profit more than doubled to $25.5m, from $12.1m last time, and gross margins increased to 21.4% from last year's 20.7%.

Cygne Designs provides branded and private label women's denim, casual and career apparel to US retailers.